National Institute Economic Review

Quarterly publication publishes research, commentary and forecasts on economic and social issues, includingeconomic modeling and analysis, productivity and competitiveness and education and training.

Articles from No. 163, January

Commentary and UK Policy Implications
Slower Economic Growth 1997 saw rapid economic growth as the economy experienced a combination of buoyant consumer spending and an unexpectedly favourable trading position. Real national income, a better measure of spending power than real GDP,...
Commentary: World Financial Market Turmoil and Global Economic Prospects
Recent months have seen severe financial shocks in many Asian economies. Large scale financial contagion has led to collapsing asset prices and significant exchange rate devaluations. Concern has inevitably mounted about the impact of these events...
Developments in East Asia and Their Implications for the UK and Europe
Introduction and Overview The turmoil in East Asia over the last six months has led to major realignments of many currencies in the region, whilst domestic equity and property markets have collapsed. Though each of the directly affected economies...
Fiscal Report
There has been a substantial improvement in the financial position of the public sector over the past year. The PSBR is expected to fall from 3 per cent of GDP in 1996/97 to about 1 1/4 per cent of GDP in the current fiscal year. The restrictive policy...
The Implications of Switching from Unfunded to Funded Pension Systems
I. Introduction In principle the distinction between unfunded and funded pension systems is simple: in unfunded schemes pensions paid to those currently retired are financed by contributions from current workers and firms; in funded schemes a stock...
The Internationalisation of German Companies' R&D
1. Introduction Some concern has been expressed recently about the capacity of the German economy to compete in the long term because of its declining involvement in R&D and increasing outward Direct Foreign Investment (Internationes 1996, Jungnickel...
The Stability Pact: Safeguarding the Credibility of the European Central Bank
I. Introduction Based on a proposal by the German finance minister, Theo Waigel, first launched in November 1995, the Stability and Growth Pact agreed at the Dublin Summit of 13-14 December 1996 and finalized in Amsterdam on 16 June 1997 seeks to...
The UK Economy
Section I. Recent Developments and Summary of the Forecast By almost any criteria 1997 turned out to be a very good year for the British economy. As in the preceding three years, real growth was faster than the rate of consumer price inflation....
The World Economy
Introduction Global economic conditions improved markedly last year. Within the OECD, output growth is estimated to have risen to 3 per cent, the best outturn since 1989. Growth was particularly buoyant in North America, reflecting strong domestic...